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Energy
Foreign investment in renewable energy power projects will bring overall benefits
In the current context, the participation of domestic and foreign private investors in power source development without government guarantee is a positive point in attracting investment in the electricity industry.


The foreign investors through domestic investors to participate in investment projects is a good sign in attracting investment for the electricity industry.

According to the Department of Electricity and Renewable Energy - Ministry of Industry and Trade, by the end of May 11, 2020, there have been 92 projects or part of solar power projects and 10 projects or part of power projects with a total capacity of nearly 6,000 MW has been commercially operational. A number of wind and solar power projects have been partially or wholly transferred by Vietnamese investors in the form of joint venture, share transfer to foreign investors from Thailand, Lan, Philippines, China, Singapore, Saudi Arabia and etc.

The Ministry of Industry and Trade finds that the transfer of all or part of an investment project is a normal activity within the market mechanism and is regulated by the Investment Law. The provisions of law allow the transfer of projects to foreign investors that meet all conditions for transfer of investment projects in conditional business lines. According to current regulations, the project transfer, change of shareholders is handled by the Department of Planning and Investment or the Ministry of Planning and Investment depending on the project size.

The Department of Electricity and Renewable Energy said that normally for BOT and coal-fired power projects invested in BOT form, or on gas and power projects which are requesting investment, they often require Government guarantee in project implementation. However, at present, solar and wind power projects are fully invested without government guarantee. In the current context, the participation of domestic and foreign private investors in power source development without government guarantee is a positive point in attracting investment in the electricity industry.

In addition, foreign investors often have better experiences and capacity in investing and managing plant operations. Foreign investors' participation in power projects will bring better overall benefits to investors and society.

Accordingly, Decision No. 11/2017 / QD-TTg of April 11, 2017 (Decision No. 11) and Decision No. 13/2020 / QD-TTg of April 6, 2020 on the mechanism to encourage solar electricity aiming for those goals. Foreign investors are allowed to participate in solar power investment in accordance with the Decisions No.11 and 13 and comply with the law on foreign investment and investment in Vietnam.

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